Payroll tax guy. This is exactly it. It's just a deferral. Employers are on the hook for paying back any underwithheld tax in 2021.
If you have a bunch of minimum wage employees, turnover is probably sky high anyway. Companies would be left holding the bag on all that uncollected tax. Even if someone wants to stick around, why would they want to pay 12.4% in 2021 to pay it all back when they can just skip out and work for a different employer?
My wife works for a company and certainly isn't making min wage, but she is under 100k. Her company sent out a blast email saying they were deferring and made it seems like Trump is such an evil guy blah blah blah.
I'm such a novice with this stuff, but does this mean that neither side is paying the tax until next quarter? Is she paying her side of the tax and they're not?
Payroll tax guy. This is exactly it. It's just a deferral. Employers are on the hook for paying back any underwithheld tax in 2021.
If you have a bunch of minimum wage employees, turnover is probably sky high anyway. Companies would be left holding the bag on all that uncollected tax. Even if someone wants to stick around, why would they want to pay 12.4% in 2021 to pay it all back when they can just skip out and work for a different employer?
Can you ELI 5?
My wife works for a company and certainly isn't making min wage, but she is under 100k. Her company sent out a blast email saying they were deferring and made it seems like Trump is such an evil guy blah blah blah.
I'm such a novice with this stuff, but does this mean that neither side is paying the tax until next quarter? Is she paying her side of the tax and they're not?
If they ARE deferring, it means they won't withhold the tax. For the rest of the year, her checks would be 7.65% higher.
But it's just a deferral. In 2021, she has to pay it back (unless Congress forgives it... LOL)
The employer doesn’t get a holiday, they pay their half of payroll tax regardless Of if they opt for deferral.